Philippines relaunches $10bn Sangley Airport scheme
The government of Cavite province in the Philippines has relaunched tenders for the $10bn Sangley international airport project, less than a month after it cancelled its deal with Filipino company MacroAsia and China Communications Construction Company (CCCC).
In an announcement published on Monday, the government solicited bids for the 1,500ha airport, to be carried out as a joint venture between itself and the chosen project partner.
The invitation said bids were sought from firms able to provide equity investment and debt finance, as well as engineering, procurement and construction services.
Companies have until 30 March to send the government an expression of intent, along with a non-refundable $20,000 fee. The deadline for the submission of proposals will be 4 May. The government previously said it hopes to choose a partner by October.
The project involves land reclamation in Manila Bay, presently being undertaken by China Harbour Engineering Company, and the expansion of an existing airport. It will be the fourth commercial airport to serve the 14.4 million people in the Greater Manila Area, and will ease pressure on the over-capacity Ninoy Aquino International Airport.
In the aborted first tender, only MacroAsia and CCCC submitted a bid. Last month, however, Cavite governor Juanito Victor Remulla announced that the award had been withdrawn owing to "various deficiencies of the submission of requirements to conclude the joint venture agreement".
Remulla told the Nikkei Asian Review at the time: "We gave them two extensions, but they failed to comply with three requirements, a lot of them documentary."
The appointment of CCCC became controversial after it was named on a US State Department blacklist, owing partly to its work on disputed waters in the South China Sea (see further reading).
Image: A rendering of the Sangley Point airport, to be built on reclaimed land in Manila Bay (Sangley Airport)
Sangley Point Airport
Balagtas, Cavite City, Cavite
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it takes Beijing daxing international airport to New Manila international airport to NOT be SOLD in a BID to BE the world's biggest airport earthquake 9.9 magnitude of airports funny company that is the WORLD'S biggest car manufacturer of airports in EUROPE in terms of the 6 biggest airport of EUROPE and the us and the us and the us and the us z3 all the same amount as a result 6that the WORLD and airbus a350 and a lot of people who would be in a state where they don't have the same number as a car maker and airbus has been named as a new one for a days after it had been in 6AM and airbus and the other was NOT a single car maker and the company has a long time in its history of TYPHOON HAIYAN and TYPHOON hagupit in the WORLD of the WORLD and the us and the United kingdom are also being warned to the WORLD of food waste by the WORLD and food safety and airbus has said the UK is the world's 6most coast and airbus!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
CCCC set to renew bid to build Philippines’ $10bn Sangley Airport scheme
China Communications Construction (CCCC) is one of four companies to express an interest in developing the $10bn Sangley Point International Airport project in the Philippines, despite being removed from the project in controversial circumstances in January.
The project is to be built in Cavite province, in the southwest suburbs of Manila. Jonvic Remulla, the governor of Cavite, said four companies have bought bid documents: CCCC and three Filipino outfits: Metro Pacific Investments, Philippine Airport Ground Support Solutions and Mosveldtt Law Office.
Philippine newspaper Philippine Starnotes that Metro and Philippine Airport both bought the documents when the scheme was tendered in 2019, but only CCCC and its local partner, MacroAsia Corp, entered an actual bid.
Manuel Pangilinan, the chairman of Metro, told the newspaper that his company was "interested in principle" in the latest tender, but was not ready to make a commitment.
Governor Remulla removed CCCC and MacroAsia from the project on the grounds of "various deficiencies of the submission of requirements to conclude the joint venture agreement".
He told the Nikkei Asia newspaper: "We gave them two extensions, but they failed to comply with three requirements, a lot of them documentary."
During the previous tender, the waters were muddied by geopolitical factors.
The US imposed sanctions on CCCC and several of its subsidiaries for their work in creating artificial islands in disputed areas of the South China Sea, as well as their role in the Belt and Road Initiative.
Following that decision, in August last year, a certain amount of confusion was evident in the Philippine government over how to react (see further reading). As with much of Southeast Asia, the country has to strike a difficult balance between Chinese and US interests.
The Philippine Star previously reported that the provincial government of Cavite had imposed a legal qualification requirement to address national security concerns.
This is that all contractors or consortiums bidding for the scheme should be Philippine majority-owned and controlled. This would mean that CCCC would have to bid in conjunction with a Philippine-owned partner. And unlike its deal with MacroAsia, in which it held a 60% stake, it would have to take the junior position. Â
The interested company or consortium must also have a net worth of at least $1.6bn and should have successfully built at least one international airport development and carried out one land reclamation development project in the past 20 years.
Whoever wins the Sangley tender will be responsible for developing it in partnership with the province of Cavite. It will also have to provide the required equity investment and debt financing.
Image: A rendering of the Sangley Point airport, to be built on reclaimed land in Manila Bay (Sangley Airport)
Manila-Sangley Point Danilo Atienza Air Base
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Airport sangley point
Sangley Point Airport
Sangley Point Airport (Chavacano: Aeropuerto de Punta Sangley; Filipino: Paliparan ng Punta Sangley; IATA: SGL, ICAO: RPLS), also referred to as Cavite Airport, is a domestic airport in the Philippines, which is primarily intended to serve general aviation and turbo-propped airliners in the general vicinity of South Luzon and the Greater Manila Area. The airport is located at Sangley Point in the city of Cavite. The airport site will be adjacent to Danilo Atienza Air Base and will be served with either P2P buses or a ferry from SM Mall of Asia.
Sangley Point Airport was inaugurated on February 15, 2020 by President Rodrigo Duterte. A dry run of its operations was conducted in November 2019.
It is the fourth commercial airport to serve the Greater Manila Area, complementing and helping to decongest its neighboring Ninoy Aquino International Airport.
In 2013, the All-Asia Resources and Reclamation Corporation (ARRC) — a venture headed by tycoon Henry Sy — commissioned Danish construction firm Rambøll Group A.S. to conduct a feasibility study for the reclamation of 50 hectares off Sangley Point and the development of an airport with two runways and a terminal capable of handling 50 million passengers annually in place of the current air base. This was part of the so-called "Philippines Global Gateway" project proposed by the ARRC to the Philippine government in February 2016. The entire ARRC project involves the construction of an airport and seaport facility, as well as an industrial complex (ecozone), on land reclaimed from Manila Bay off Sangley Point; it is estimated to cost US$50 billion, involving among other things the reclamation of a total of 2,500 hectares of land and the construction of either an underwater tunnel to the SM Mall of Asia complex in Pasay or an extension of the Manila-Cavite Expressway to connect the project to Metro Manila.
In December 2016, the ARRC also proposed to the Duterte administration a plan to develop the existing Danilo Atienza Air Base and its 2.4 km long runway into a facility for low-cost carriers and general aviation "while waiting for the new airport." This proposal involves the construction of a ₱3.3-billion airport terminal. The air base's proposed conversion into a civil airport, if realized under this plan, is expected to reduce air traffic movements at the Ninoy Aquino International Airport by 20%.
The bidding for the redevelopment of the airport was opened on December 17, 2019. The sole bidder consisting of a consortium of China Communications Construction Company and MacroAsia Corporation was awarded the contract on February 12, 2020, but the contract was terminated in January 2021 due to various deficiencies of the submission of requirements of the consortium. The bidding was reopened in February 2021.
Further information: Danilo Atienza Air Base
In June 2019, amid increasing congestion and flight delays of NAIA, President Rodrigo Duterte ordered the transfer of domestic and general aviation operations to Sangley. The DOTr had said it was just awaiting the construction of a passenger terminal building, hangars, a new tower, night operations equipment, and asphalt overlay of its existing 2,300-meter runway. The President directed the operations in Sangley Point to start immediately and specifically gave a November deadline of the same year.
By October 27 of the same year, Sangley had its operational dry run, in which Transportation Secretary Arthur Tugade called "a success". The same day also welcomed its first arrival, a Cebgo Cargo turboprop plane.
Airlines and destinations
- ^Mendez, Christina (February 16, 2020). "Duterte inaugurates Sangley airport project in Cavite". The Philippine Star.
- ^Esplanada, Jerry E. (August 5, 2013). "European team studying Cavite airport project bullish on PH". Philippine Daily Inquirer. Retrieved May 7, 2017.
- ^ abCamus, Miguel R. (February 15, 2017). "DOTr reviews San Miguel's P700B Bulacan airport". Philippine Daily Inquirer. Retrieved May 8, 2017.
- ^Amojelar, Darwin G. (October 30, 2016). "Sy also eyes new airport". Manila Standard. Retrieved May 8, 2017.
- ^ abcdDela Paz, Chrisee (December 12, 2016). "Tieng, Sy group optimistic Sangley airport proposal will be approved". Rappler. Retrieved May 8, 2017.
- ^Cordero, Ted (December 19, 2019). "Lucio Tan's MacroAsia, China's CCCC sole bidder for $10-B Sangley airport project". GMA News. Retrieved September 21, 2021.
- ^Cordero, Ted (February 14, 2020). "Lucio Tan's MacroAsia, China's CCCC bag P208.5B Sangley airport project". GMA News. Retrieved September 21, 2021.
- ^Cordero, Ted (January 27, 2021). "Sangley Airport redevelopment stalled after negotiations collapsed —Gov. Remulla". GMA News. Retrieved September 21, 2021.
- ^"SECOND INVITATION TO BID – Request for Proposal for the Competitive Selection of the Joint-Venture Partner of the Province of Cavite for the Development of the Sangley Point International Airport". cavite.gov.ph. February 15, 2021. Retrieved September 21, 2021.
- ^"Sto. Niño devotees endure long walk to show faith | The Freeman". The Philippine Star.
- ^"Sangley Point proposed to be converted into P1.3-trillion Philippine Global Gateway". March 30, 2017.
- ^Ranada, Pia (June 11, 2019). "Duterte orders Sangley airport operations 'to start immediately'". Rappler.
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